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A.G. Schneiderman Announces Settlements With 211 Contractors Over Violations Of Home Improvement Contracts Law

Schneiderman: Homeowners Need To Know Their Rights And Home Improvement Contractors Must Obey The Law

NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with 211 home improvement contractors for violating the state’s Home Improvement Contracts Law. The 211 contractors have signed an agreement to end their unlawful conduct and will pay penalties and fines, after an investigation by the Attorney General revealed widespread violations of the law, including failure to provide written contracts or honor the most basic terms of consumers’ work agreements.

The geographic regions in which settlements were reached include Binghamton (48), Buffalo (31), Poughkeepsie (27), Rochester (28), Syracuse (16), Utica (18), Watertown (35) and Putnam (8). The contractors have agreed to do home improvement work using only underwritten contracts that comply with the law and to put all advance deposits into a customer account at a local banking institution. Each of these contractors paid penalties and costs ranging up to $1,500.

"Far too often, homeowners hire contractors without having signed documents stating what work will be done and how long it will take. And time and again, consumers end up with much larger bills than expected, or with projects that were never started or completed," said Attorney General Schneiderman. "They need to know their rights, and home improvement contractors must obey the law. My office will continue fighting to protect consumers' hard-earned dollars and ensure that bad contractors are held accountable."

Article 36-A of the General Business Law requires that every home improvement contractor, before beginning work, must provide the consumer with a written contract, signed by both parties, which sets out certain specific information and disclosures.

For example, the contract must:

Provide proposed starting and completion dates

Describe the work to be done

Include materials to be provided

Give notice that the consumer has an unconditional three-day right to cancel the contract without penalty

In addition, the law requires that any advance deposits taken by the contractor must be placed into an account at a banking institution separate from the contractor’s other funds. The contractor must notify the consumer of the banking institution at which the deposit is kept.

Consumers should take the following precautions when hiring home improvement contractors:

Be specific about what work you want done

Educate yourself about the required permits – don't rely solely on the contractor

Shop around

Get references and check them

Get proof of insurance from the contractor

Check licenses (if required)

Never pay the full price upfront

Always put work to be done in writing

Know where your payments are going

Never do business with a contractor who is unwilling to abide by any of the conditions above

If consumers feel they have been victimized, they are urged to contact the Attorney General's Consumer Helpline: 1-800-771-7755

A.G. Schneiderman Issues Fraud Alert On Immigration Scams

Amid Surge Of Bias Crimes, A.G. Schneiderman Stands With Dozens Of Civil Rights Leaders To “Stand Up To Hate,” Issues Urgent Bulletin To Local Law Enforcement Offering Guidance In Identifying And Prosecuting Hate Crimes